Blackstone to Purchase Britishvolt Site to Build One of the Largest Data Centers in Europe

Blackstone Group, the US-based private equity giant, has acquired the former site of the Britishvolt battery factory for USD 136 million. The site, located near Cambois in Northumberland, UK, is set to be transformed into one of Europe's largest data centers. Blackstone will purchase the site on behalf of QTS Datacenters.

Due to its accessibility to renewable energy sources, Blackstone chose the 95-hectare (235-acre) site. The deal will secure the future of a large brownfield site in a relatively deprived part of the UK. The data center will also be able to make use of local green power generation, including offshore wind energy.

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Britishvolt had initially planned to build a USD 4.73 billion gigafactory on the site before the company collapsed early last year. The site was under an agreement between Britishvolt and the county council. However, the collapse of Britishvolt paved the way for Blackstone's acquisition.

The acquisition marks a significant change in the site's intended use from its initial plan as a gigafactory. While Britishvolt had promised to bring as many as 3,000 jobs to the region with an ambitious plan to build a second car battery “gigafactory”, Blackstone's data center is expected to create over 1,600 direct jobs, including 1,200 long-term construction jobs. Recently, Blackstone planned to acquire data center construction firm Winthrop.

The demand for data centers is expected to continue to grow rapidly as households and businesses stream and send ever more digital content and information, and demand for cloud internet services and artificial intelligence also increases. Blackstone's plans to build one of the largest data center facilities in Western Europe on the site align with this trend.

Objectives of Site Acquisition

The acquisition of the Britishvolt site presents a unique opportunity for Blackstone. The firm plans to leverage the site's links to renewable energy, transforming it into one of the largest data center facilities in Europe. This move aligns with Blackstone's commitment to outperform through innovation, as the demand for data centers continues to grow rapidly.

The acquisition of the Britishvolt site offers several strategic benefits for Blackstone. Firstly, it allows the firm to capitalize on the growing demand for data centers, driven by the digital transformation of businesses and households. Secondly, the site's location in Northumberland provides access to local green power generation, including floating offshore wind farms. This aligns with Blackstone's commitment to sustainability and its focus on investments that contribute to a greener economy.

Moreover, the deal secures the future of a large brownfield site in a relatively deprived part of the UK. While the data center plans are unlikely to generate thousands of jobs, as the failed battery factory project promised, they are expected to create over 1,600 direct jobs, including 1,200 long-term construction jobs. 

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